Honolulu

Hawaii Jobless Rate Ticks Up, Islands Still Sitting Pretty At No. 3

AI Assisted Icon
Published on May 25, 2026
Hawaii Jobless Rate Ticks Up, Islands Still Sitting Pretty At No. 3Source: Unsplash/ Walter Martin

Hawaii's unemployment rate nudged up in April, but the islands are still sitting near the top of the national heap when it comes to low joblessness.

The seasonally adjusted unemployment rate came in at 2.5% for April, up just a hair from 2.4% in March. Out of a labor force of about 687,900 people, roughly 671,050 were employed, leaving about 16,850 residents counted as unemployed.

In a release last Thursday, DBEDT reported that total nonfarm payroll employment in April stood at 644,300. Payrolls rose by 1,700 jobs compared with March and were up 2,300 from the same month a year earlier, signaling that hiring is still very much alive even with the slight uptick in the jobless rate.

Where Hawaii Fits Nationally

On the national scoreboard, Hawaii still looks strong. The U.S. Bureau of Labor Statistics statewide data for April show South Dakota with the lowest unemployment rate at 2.2% and North Dakota at 2.4%. That puts Hawaii in third place among states with its 2.5% rate, while the national unemployment rate sat noticeably higher at 4.3%.

The BLS figures offer some useful context: even with a minor bump, Hawaii remains one of the tightest labor markets in the country, with far fewer people looking for work compared with the U.S. overall.

Industry Snapshot

Not all corners of the economy moved in the same direction. According to DBEDT's establishment survey, April job gains were led by private education and health services, which added about 700 positions, and construction, which picked up roughly 600 jobs.

On the flip side, manufacturing and leisure & hospitality each shed about 100 jobs in April. Overall, total nonagricultural employment increased by 1,700 jobs from March, with government agencies adding around 400 positions to their payrolls.

Former DBEDT chief economist Eugene Tian told the Honolulu Star-Advertiser that "the employment statistics for the first four months of 2026 provided a mixed trend we don't normally see in our economy." Tian has projected that the state's unemployment rate will likely finish 2026 near 2.5% as seasonal patterns and shifts across industries work through the system.

What To Watch

Looking ahead, analysts are eyeing a few key storylines. One is whether leisure and hospitality hiring can bounce back as summer visitor traffic ramps up, especially after losing jobs in April. Another is whether more residents reenter the labor force, which could nudge the unemployment rate higher even if employers keep adding positions.

The U.S. Bureau of Labor Statistics is scheduled to release metropolitan area employment and unemployment figures on Wednesday, June 3. Those local numbers should offer a clearer look at how different parts of the islands are faring beneath the statewide averages.